AlixPartners, a global business-advisory firm, released a study, including an in-depth consumer survey, addressing many of the issues facing the restaurant industry.
The firm’s annual North American outlook finds that while the restaurant and foodservice industry posted strong results in 2015, the months ahead are likely to be challenging and even turbulent as the industry strives to meet the conflicting demands of health-conscious diners who are now also worried about food safety; battles to control or off-set labor costs in an environment of escalating pressure from many fronts to raise wage rates; and ponders how much to invest in such things as ordering, payment and loyalty technologies in an effort to, among other things, fend off rising competition from non-traditional players such as convenience stores and explore new industry channels such as delivery.
“Issues such as ensuring food safety throughout broader supply chains, offsetting rising labor rates, and determining which technology investments are prudent and which are likely to become obsolete overnight present formidable challenges for the industry,” says Adam Werner, managing director at AlixPartners and co-head of the firm’s restaurant, foodservice and hospitality practice. “The most successful operators will be those who tie near-term actions to a sound, analytical long-term strategy, and who along the way practice strategic restraint, carefully picking their spots and always looking for ways to do more with less.”
The AlixPartners survey finds that diners’ interest in selecting meals they see as contributing to their health and wellness continues to shift from just counting calories to looking for fresh and local ingredients in what they order. In fact, 45 percent of those surveyed cite “fresh and local ingredients” as their No. 1 consideration when buying a “healthy” meal, the highest percentage among 12 choices offered in the survey, with respondents able to choose more than one. By comparison, 41 percent of respondents say “low-calorie options.”
However, this very same demand for fresh, local ingredients is, of course, seen by many as being at the core of the various food-safety outbreaks in the past year, presenting a big challenge for chains well beyond those affected to date. A message to that effect rings through loud and clear in the survey, as 28 percent of those polled say they would “never” eat at a chain affected by a food-safety outbreak—regardless of the geographic location of the outbreak. And 62 percent of respondents say they would wait until the overall chain was declared safe again or eat at unaffected locations.